Incremental Capacity

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​​​​The Network Code on Capacity Allocation Mechanisms(NC CAM) prescribes a harmonised auction regime for the allocation of existing capacity at Interconnection Points, but does not put rules forward for the identification, allocation and tariff setting of incremental capacity and new capacity. Incremental capacity refers to capacity above technically available capacity at existing Interconnection Points (IPs). New capacity relates to the creation of an IP between two market areas, or to the creation of physical reverse capacity at an existing IP where gas could previously flow in one direction only. The aim of the work on incremental (and new) capacity is to propose harmonised and market-based approaches throughout Europe to allocate and price both existing and incremental/new capacity in an integrated manner.

The CEER Gas Target Model (in December 2011) concluded that efficient, market-driven and timely infrastructure investments for interconnection capacity are needed to support the completion of the internal energy market. National regulatory authorities consulted the stakeholders and developed approaches for coordinated and market-based procedures to identify the need for and to integrate new and incremental capacity in an EU-wide capacity allocation regime.

In the Blueprint paper regulators with the support of stakeholders have identified possible options on when and how incremental capacity demand could be identified (economic test) and offered in auction processes. These approaches were transposed in five technical design options. Open Seasons were proposed to treat large and complex new infrastructure projects. Design principles for the economic test as well as tariff implications are discussed in the paper.

During 2015, the Agency assessed and refined the proposal received from ENTSOG and publicly consulted upon its proposals. The Agency not only revised the legal texts on incremental capacity, but also proposed a few technical amendments to the CAM network code.

Following a Comitology procedure these amendments shall become legally binding, and the first integrated incremental auctions could take place in July 2017. The Gas Committee voted the amended Network Code on 13 October 2016. The amendments have passed the Comitology process and resulted in the Commision Regulation (EU) 2017/459 establishing a network code on capacity allocation mechanisms in gas transmission systems and repealing Regulation (EU) No 984/2013.​

Agency decision on the incremental capacity project proposal for the Mosonmagyaróvár interconnection point